Economics (Basics)

An economic model is a theory or simplified representation that helps explain/predict economic _______ in the real world

Ability of risk-taking individuals to develop new products and start new businesses in order to make profits.

Resources of land, labor, capital, and entrepreneurship used to produce goods and services.

The need to make choices arises because of scarcity, the basic problem of economics.

“I need new shoes because my shoes are not in style.” This is a need.

Human effort directed toward producing goods and services.

Some economists add labor to the list of factors of production.

The study of how individuals and societies make choices about ways to use scarce resources to fulfill their wants.

Productivity is the amount of output (goods&services) that results from a given level of inputs (factors of production).

To some economist, this is the 5th factor...

Individuals "satisfy" their unlimited wants in a world of limited resources by making choices.

Natural resources and surface land and water. Fish, animals, forests, mineral deposits, and other “gifts of nature”.

Previously manufactured goods used to make other goods and services. 

Ecologists study economy-all activities in a nation that affects the production, distribution,& use of goods & services.

Condition...of not being able to have wants b/c wants exceed what can be made from all available resources at any...time

The value of the next best alternative given up for the alternative that was chosen.

Tangible objects that can satisfy people’s wants and needs.

Graph showing the maximum combinations of goods & services that can be produced from a fixed amt of resources in a..time

Microeconomics - an example would be how North America Trades with South America

Activities done for others for a fee. Doctors, hair stylists, sell their_____ which is a part of Labor. Actions...

Sacrificing one good or service to purchase or produce another.